Centene (NYSE:CNC) Price Target Raised to $78.00

Key Points

• UBS raised Centene’s price target to $78 from $70 while maintaining a neutral rating, implying roughly 16% upside from the reported $67.11 share price. The broader analyst consensus remains “Hold,” with a $71.85 target.
• Centene reported quarterly adjusted EPS of $0.58, beating the $0.10 consensus estimate, while revenue reached $50.65 billion versus expectations of $47.12 billion. Management also raised full-year adjusted EPS guidance to above $5.20.
• Despite the strong results, investors face risks from Medicaid enrollment declines, margin pressure and a continuing GAAP loss. Institutional investors own approximately 93.6% of the company, while an insider recently sold 56,500 shares.

Centene (NYSE:CNC - Get Free Report) had its target price hoisted by stock analysts at UBS Group from $70.00 to $78.00 in a report released on Wednesday, Benzinga reports. The firm presently has a "neutral" rating on the stock. UBS Group's target price would suggest a potential upside of 16.22% from the company's current price.

Several other equities research analysts have also recently weighed in on the company. Morgan Stanley set a $71.00 price target on Centene and gave the stock an "equal weight" rating in a research note on Wednesday. Weiss Ratings raised Centene from a "sell (d)" rating to a "sell (d+)" rating in a research note on Thursday, October 8th. HC Wainwright restated a "buy" rating on shares of Centene in a report on Friday, September 11th. Wall Street Zen raised Centene from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 18th. Finally, JPMorgan Chase & Co. upped their price target on shares of Centene from $60.00 to $67.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 4th. Nine investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $71.85.

Centene Trading Down 2.3%

Centene stock traded down $1.60 during trading hours on Wednesday, reaching $67.11. The stock had a trading volume of 5,798,412 shares, compared to its average volume of 5,628,188. The stock has a market cap of $33.15 billion, a PE ratio of -6.43, a PEG ratio of 0.44 and a beta of 1.13. Centene has a 52 week low of $31.63 and a 52 week high of $72.50. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.15 and a quick ratio of 1.15. The company has a fifty day simple moving average of $65.90 and a 200-day simple moving average of $54.94.

Centene (NYSE:CNC - Get Free Report) last released its quarterly earnings data on Tuesday, October 27th. The company reported $0.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.10 by $0.48. Centene had a negative net margin of 2.51% and a positive return on equity of 12.12%. The firm had revenue of $50.65 billion for the quarter, compared to analysts' expectations of $47.12 billion. During the same quarter in the previous year, the company earned $0.50 earnings per share. The company's revenue for the quarter was up 1.9% compared to the same quarter last year. Analysts forecast that Centene will post 4.89 EPS for the current fiscal year.

Insider Activity at Centene

In related news, General Counsel Christopher Koster sold 56,500 shares of the stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $66.90, for a total transaction of $3,779,850.00. Following the sale, the general counsel directly owned 248,854 shares of the company's stock, valued at $16,648,332.60. This trade represents a 18.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 0.37% of the company's stock.

Hedge Funds Weigh In On Centene

Hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in shares of Centene in the second quarter worth approximately $2,660,422,000. Wellington Management Group LLP boosted its holdings in Centene by 423.0% in the second quarter. Wellington Management Group LLP now owns 13,301,215 shares of the company's stock worth $853,805,000 after purchasing an additional 10,757,914 shares during the last quarter. Bank of America Corp DE bought a new stake in Centene in the 2nd quarter worth approximately $285,713,000. Deutsche Bank AG bought a new stake in Centene in the 2nd quarter worth approximately $257,279,000. Finally, Legal & General Group Plc purchased a new stake in Centene during the 2nd quarter valued at $244,463,000. Institutional investors own 93.63% of the company's stock.

Key Stories Impacting Centene

Here are the key news stories impacting Centene this week:

• Positive Sentiment: Centene reported third-quarter adjusted EPS of $0.58, well above the roughly $0.10 consensus estimate, while revenue reached $50.65 billion versus expectations of $47.12 billion. The consolidated medical loss ratio was 92.7%, better than anticipated and supported by Medicare performance. Centene Corporation Reports Third Quarter 2026 Results
• Positive Sentiment: Management raised 2026 guidance to adjusted diluted EPS above $5.20, a $0.40 increase, and GAAP diluted EPS above $3.46. The Medicare business is recovering faster than expected and is projected to reach breakeven a year early. Centene forecasts 2026 adjusted EPS greater than $5.20
• Positive Sentiment: Analysts responded by lifting price targets: Barclays raised its target to $82 and retained an overweight rating, while Cantor Fitzgerald increased its target to $79. UBS also raised its target to $78, although it maintained a neutral rating. Centene Analysts Boost Their Forecasts Following Upbeat Q3 Earnings
• Neutral Sentiment: The quarterly GAAP result remained a loss of $0.14 per share, or $71 million, although this was a significant improvement from the prior-year loss. Investors may be focusing more on the quality and durability of the recovery than on the earnings beat alone. Centene Posts Narrower Loss in Q3
• Negative Sentiment: Management continues to flag Medicaid enrollment declines and margin pressure as risks. Those concerns could limit upside and encourage profit-taking after CNC’s substantial advance over the past year. High-volume put-option buying also signals increased near-term hedging or bearish speculation. Centene Q3 Earnings Call Highlights Faster Recovery and Medicaid Risks

Centene Company Profile

Centene Corporation is a diversified healthcare enterprise that provides government-sponsored and commercial health insurance programs and related healthcare services. The company's offerings are primarily focused on Medicaid, Medicare, and health insurance marketplace plans, with an emphasis on serving individuals and families who may have limited access to traditional healthcare coverage.

Centene operates Medicaid health plans through state-based contracts and offers Medicare Advantage, Medicare prescription drug, and Medicare Supplement products through its Wellcare brand.

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